What is an Executive Information System EIS and how is it used?

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HOW AN EIS SHOULD BE?
COMPONENTS OF EIS
APPLICATIONS OF EIS

Executive Information System: EIS is an information system based on computer which generally serves the information needs of the top level management of an organization. Check Complete details for EIS System like – What is Executive Information System?, Components of Executive Information System, Advantages of Executive Information System, Application of Executive Information System etc. Now scroll down below n check more details for “Executive Information System”

What’s An Executive Information System?

We read earlier about various information systems such as

Now, let us study another system called the Executive Information System.

Users can extract much needed information without the hardship to learn complex query language or any difficult formulae. It enables the users to get information on time without any delay. It enables users to have access to management reports.

EIS system is very fast. It is capable of accessing both internal as well as external data. EIS basically provides various online options with which the report analysis can be done in detail. EIS provides its users with drill down facility and reporting tools. EIS can also be used to make decision just like Decision Support System. EIS helps management to monitor performance of the organization and thus helps organization to achieve its goals and objectives in the long run. With the introduction of Artificial Intelligence, EIS has lost its importance to a little extent.

HOW AN EIS SHOULD BE?

EIS should be very easy to understand so that the users do not get confused while using it. A user friendly EIS can help management to save time and collect information rather easily.
EIS should be such that it helps in achieving organizational objective. EIS data should clearly reflect objectives of the organization in various core fields of the organization.
EIS should be such that it encourages staff & management to work towards growth of the organization.
EIS must be such that it meets the changing needs of the organization.
EIS should help to reduce the workload of the top management and staff.
Confidential Information should not become part of the EIS.

COMPONENTS OF EIS

USER INTERFACE: User Interface allows the users to communicate with the EIS. User interface must be easy to use and understand. Users should not be required to understand the complex query languages and other mathematical or statistical formulas.
HARDWARE: Hardware refers to devices by which users give input, data processing and the output is received. Users may give input via keyboard and mouse and CPU may be used for processing and output may be received on monitor or from printer.
SOFTWARE: Software is required for various calculations, providing graphical view to the management, storing data in the form of Information, etc. Software allows user to get information in the form it is actually required.
TELECOMMUNICATION: In today’s world the most important thing is communication. Users may require transferring information from one point to another point. The information might be a little confidential in nature. The secrecy of the information should be well maintained.

APPLICATIONS OF EIS

MANUFACTURING: It determines whether a process is running correctly or not. It helps in ensuring proper quality control of finished goods. It measures the actual process time and compares with the standard time required for the process. It provides management with daily production report, daily consumption report, safety stock report, economic order quantity, etc.
FINANCIAL: Every organization needs to ensure financial activities are running sound. EIS may help to analyze whether payment has been realized from creditors within stipulated period of time. It can help management in managing various other sources of finance.
ACCOUNTING: It helps in proper accounting and disbursement of accounting functions.

ADVANTAGES

EIS is easy for use and saves time of the top level management of the organization.
EIS provide access to timely information in a rapid manner.
EIS provides extensive online analysis tools.
EIS can easily be given a DSS support.

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Executive Information System is commonly abbreviated as EIS, and it is a management information system which supports, facilitates, and makes decisions for senior executives by providing easy access to both internal and external information. Executive Information System can also be considered a specialized form of a Decision Support System. The focus on Executive Information Systems is on easy to use user interfaces and graphical displays. The benefits of this is that they offer strong reports and drill down capabilities. Drill down capabilities are when you move from summary information to detailed data by focusing in on something. Executive Information Systems are important because they help top-level executives analyze, compare and highlight trends in important areas so they can monitor performance and identify opportunities and problems. Over recent years however, the popularity of Executive Information Systems has decreased due to Business Intelligence, analytic(s), and digital dashboards.

Executive Information Systems were originally developed as mainframe computer based programs, where the purpose was to package a company’s data and provide sales performance. The main objective behind Executive Information Systems was to highlight information to satisfy senior executives’ needs and not for the entire company.

Today, Employees can use their personal computers and access the company’s data and decide which data is best to use. Executive Information Systems is not only for “executives” now, but for the entire company. The freedom with this allows everyone to access company data and share information with everyone in the company.

The hardware for Executive Information Systems consists of four main components: Input data entry devices, the CPU, Data Storage Files, and Output devices. Input data entry devices allow executives to enter, verify, and update data immediately. The CPU (central processing unit) is the center point because it controls the other computer system components. Data Storage Files are for saving useful business information, and it allows for easy historical information lookup. Output Devices are visual or permanent records for the executive to save or read. Executive Information System products for networked work stations are becoming more easily available, because companies offer local area networks. Running EIS with these systems require less support and also save tons of money.

There are also 4 main components for choosing the right software for Executive Information Systems. It is very important and main concern, because it measures how components integrate the data into one system. The first main software component is Text base software, and most common form of text is probably documents. The second component is Database, which reside on vendor-specific databases, and help executives access both internal and external data. The third component is Graphic Base, which can turn volumes of text into visual information so executives can use them. Examples of graphic base are: Time series charts, scatter diagrams, maps, motion detectors, sequence charts, and bar charts. The fourth and final component for software is Model Base. The Executive Information Systems models contain routine and special statistical, financial, and other quantitative analysis. Another difficult problem that executives face is choosing the right technical software packages. They have to make sure they are affordable, easy to use, make sure the package can run on existing hardware, and much more.

The use interface is also very important to Executive Information Systems. It needs to be efficient to retrieve data for decision makers. There are many types of interfaces that can become available to the Executive Information Systems, so it is very important that the interface must fit with the decision maker’s style. Some of the interface styles are scheduled reports, questions and answers, menu driven, command language, natural language, and input and output. If the executive is not comfortable with the interface, the Executive Information System will not be fully utilized.

http://portal.acm.org/citation.cfm?id=954330

http://www.bestpricecomputers.co.uk/glossary/executive-information-systems.htm